Financial Market Trends
Investors largely depend upon the stock analysts before investing as the analysts closely study the Financial Market Trendsto develop a clear overview about different stocks,bonds and securities. With growth of financial trading,markets statistics help a lot during initiating investments.
Investment without proper benchmarking can be of high risk,for better risk management,the financial advisors thoroughly scrutinizes the market trends by using the financial market statistics. For all kinds of stock market index benchmarking ,it is required to have a clear perception about the market trends,it is prudent to note that the closing price and the daily changes. Financial Market Trendsare used for preparation of bars,charts that help during market trend speculation.
Leading financial analysts across the globe closely monitor the changing stock market statistics.
A close study of the gainers,losers and performances by price level is possible with different financial market statistics. Financial Market Trendscan be daily,weekly,monthly ,quarterly or even yearly.
Significant changes are often found from the market statistics and fundamental and technical analysis are also carried out on the basis of the provided facts and figures. A clear distinction between the strong and the weak shares can be made on the basis of financial market statistics. During technical analysis business trends and potential growth of different companies are checked.
Information about different stocks,bonds and securities makes an investor aware and these also help in perceiving the trading volume and the overvalued stocks.
Financial analysts across the globe are well aware about the following methods of analyzing trends of a stock market :
- Market share weighting
- Market value weighting
- Float adjusted weighting
- Full weighting
A financial market index may be used to find the price value (Price-weighted index).
The following techniques of stock market prediction depends upon financial market statistics:
Scalping: Purchase of large number of stocks with an aim of small move in the momentum.
Day trading: Purchase and sell of stocks within a single trading day.
Swing trading:Purchasing a share for a short tenure with an aim of alluring return.
Buy and hold:Buying a share with a long term investment planning.
Financial Market Trendskeep an investor aware about the performances of specific stocks,bonds and securities.